TIMED TASK

Kuchen Manufacturing uses backflush costing to account for an electronic meter it makes. During August 2008, the firm produced 16,000 meters of which it sold 15,800. The standard cost for each meter is: Direct material P 20 Conversion costs 44 Total P 64 Assume that the company had no inventory on August 1. The following event took place in August: 1. Purchased P320,000 of direct materials. 2. Incurred P708,000 of conversion costs. 3. Applied P704,000 of conversion costs to Raw and In Process Inventory. 4. Finished 16,000 meters. 5. Sold 15,800 meters for P100 each. Amount of Cost of Goods Sold after the adjustment of over-under applied conversion cost: O P1,011,200 P1,015,200 O P1,028,000 O P1,024,000